Knight Frank steer Mercedes dealerships takeover
The Birmingham office of Knight Frank has advised the world’s biggest Mercedes retailer on the acquisition of nine Mercedes-Benz dealerships, including four in the West Midlands.
The deal sees Hong Kong-based Lei Shing Hong, which represents the Mercedes marque in China, South Korea and Cambodia, gain its first foothold in the UK.
More than 260 staff are employed across the four sites in the West Midlands (in Lawley Middleway and Bromford Lane (used cars), Birmingham; Mile Oak, Tamworth, and Warwick Road, Solihull). A further 336 staff work across five sites in the Manchester area. All staff will transfer to the new business.
Knight Frank’s automotive team undertook pre-acquisition due diligence for Lei Shing Hong and valued the property assets of the nine Mercedes-Benz Retail dealerships. The Hong Kong group beat more than 20 bidders to win the portfolio. The price is undisclosed.
Tom Poynton, a partner in the firm’s Birmingham-based national automotive team, said:
“This is the first time Mercedes has disposed of any of its UK sites and is part of a wider trend we are seeing in the sector, with manufacturers choosing to concentrate on making cars rather than selling them.
We believe this is a landmark transaction in the motor retailing sector and demonstrates global corporations’ confidence in the UK automotive industry.”